Inclusive growth -Way out through micro credit for SHGS

Financial system of a country plays a major role in empowering the citizens. Attempt has constantly been made to include the bottom layer of the society with in the gamut of financial system since independence. Nationalization of commercial banks, specialized government plans and linkage of SHGs to banks are some of the major initiatives in this regard. Today people in India are open to variety of financial offerings across the country for diversified purposes from different types of financial institutions. Micro credit to SHGs is one such aggressively implemented and highly appreciated program in India. The seed of success of this program is brought from Bangladesh. This research paper focuses on the growth of the members of SHGs through mutual micro credit system, which in turn form the integral part of inclusive growth of the country. Paper made a detailed attempt to elicit the fund raising mechanism, source of borrowing, its end use and the actual outcome in SHGs. The study has been restricted to 217 members out of the total population of 1368 members spread out in 16 centers of 107 SHGs of a non-government organization in Dakshina Kannada District of Karnataka State. Data has been collected through a detailed schedule consisting of 53 structured questions. Research finding reveal that the borrowing, utilization and repayment of funds have taken place rigorously in the SHGs with bank linkage. But the members of the SHGs are not empowered to a great extent. Research also explored the ways to capture the non quantifiable variables which empowered the SHG members. But findings show that, even in non-quantifiable variables, the members are not thoroughly empowered.